David, as I understand the J/V agreement (based on a conversation I had with John Chalcraft), Barrick was only required to give notice by Mar. 31 if B. was not going to make the final option payment of US$3,750,000 on July 1/97. As no notice was given, I think we have all assumed that ABX is now legally obligated to make that payment. If, as you say, the "only" sanction for non-payment is that everything reverts to PFG 100%, I fail to see the significance of the March 31 deadline. Barrick gets 3 more months to do more work, and if they now decide that project is uneconomic, they walk. What do they care if everything then reverts to PFG?
If, on the other hand, ABX is now legally obligated to make the payment, irregardless of whether they stay in or out, then the March 31 deadline meant something. In this case, at least PFG would have US$3,750,000 less to pay if PFG decides to carry on alone.
Could you please clarify. Thanks.
J. Kerr. |
